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♤ There is need for field supervision of MFIs to check ground realities and the operational efficiency of such institutions.
♤ Also incentives should be offered to MFIs for opening branches in unbanked villages, so as to increase rural penetration.
♤ Also MFIs be encouraged to offer complete range of products to their clients. Transparent pricing and technology implementation to maintain uniformity and efficiency are among the others which these institutions should adopt.
♤ Inability of MFIs in getting sufficient funds is a major hindrance in the microfinance growth and so these institutions should look for alternative sources of funds.
♤ Some of the alternative fund sources include outside equity investment, portfolio buyouts and securitization of loans which only a few large MFIs are currently availing.
♤ Information and technology can induce massive impact on the state of credit market accessibility which remains the most significant issue when it comes to availability of formal loans at market price.
♤ Indian microfinance industry came a long way from 1975 with the development of RRB (Regional and Rural Banks). Smooth functioning of Indian microfinance industry can be enabled through setting up of a separate regulatory authority to discourage malpractice and political influence.
♤ Strengthening the credit check and debt collection processes and educating the villagers about products and consequences is important.